California Unveils Crypto Executive Order as Competition for US Crypto Capital Builds

The world’s fifth-largest economy is positioning itself to become a hub for the digital asset industry

article-image

California Governor Gavin Newsom | Source: Shutterstock

share

key takeaways

  • The governor’s latest executive order looks to create transparent regulation around digital assets
  • The state is hoping to align itself with upcoming policy from the federal government

The state known as a bastion of technology and an economy that dwarfs many a nation is warming up to digital assets — and the need to regulate them, specifically. 

Gov. Gavin Newsom signed an executive order Wednesday aimed at establishing regulatory guidelines around the digital asset industry that protect investors while fostering innovation, Newsom’s office said in a statement. 

“California is a global hub of innovation, and we’re setting up the state for success with this emerging technology – spurring responsible innovation, protecting consumers, and leveraging this technology for the public good,” Newsom said. “Too often government lags behind technological advancements, so we’re getting ahead of the curve on this, laying the foundation to allow for consumers and business to thrive.”

The executive order builds on President Biden’s recent moves to bring regulatory clarity to the emerging asset class, according to Newsom, with the hopes of positioning California ahead of the curve in terms of looming federal policy. 

Newsom’s gambit comes as mayors in New York and Miami are maneuvering to roll out crypto-friendly regulations that could establish their metropolitan areas as the US’ crypto hub. 

Denelle Dixon, CEO of the Stellar Development Foundation, told Blockworks it’s a “huge win” to see California take blockchain rule-making seriously, especially when it comes to job creation. 

“Best known as the home of Web2, the governor’s call today was a move toward a Web3 future,” Dixon said. 

Under the executive order, California officials are tasked with soliciting feedback from industry participants, as well as the public, the statement said. Lawmakers are also set to consider how blockchain technology could be used to address public — and policy — needs. 

New York, meanwhile, is considering a bill that could curtail proof-of-work mining, namely, bitcoin. Illinois lawmakers have introduced a measure that would allow the department of revenue to accept crypto payments, while Colorado’s governor pushes for cryptocurrency tax payments.  

“Like many things in United States politics, crypto regulation trickles up from the states,” Ron Hammond, director of government affairs for the Blockchain Association, said. “A lot of battles we see happening at a state level do trickle up to the [federal level].”


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (5).png

Research

Outside of stablecoins, the value of tokenized assets sits below $20B, dominated by the following asset classes: private credit, US Treasuries, commodities, institutional alternative funds, stocks, non-US government debt, and corporate bonds. In the coming months, we see the greatest opportunities in the tokenization of illiquid markets, particularly private equity. However, the successful integration of offchain assets into blockchain ecosystems relies heavily on clear and consistent regulatory frameworks, with purpose-built infrastructure to support it.

article-image

Coinbase Asset Management and One River CEO Eric Peters explains why crypto’s not yet focused on fundamentals

article-image

Over the past 24 hours, PumpSwap’s largest liquidity pool by volume contains tokens with the tickers DOGEMOON and ballscoin

article-image

10T Holdings’ Dan Tapiero predicts crypto listings on exchanges are a “mini step” for value moving onchain

article-image

The S&P 500 was mostly flat after a month of losses, and the Nasdaq has been slowly gaining

article-image

Movement Labs is once again at the core of some criticism after it declined to name a market maker offboarded by Binance

article-image

Experts discuss the future of crypto ETFs as Trump puts “money where his mouth is”